The Beginner’s Guide to Flippa: Part 3

The Beginner’s Guide to Flippa: Part 3

In the third installment of the Beginners Guide we’ll focus on the three payment options that are available to users on Flippa: Flippa Escrow, Paypal and Escrow.com. All other charges on Flippa will also be covered.

These posts are interactive so if you have any suggestions or find any features on Flippa or Dealflow particularly challenging or confusing then please contact us at [email protected] You can contact me directly at [email protected] We would love to hear your feedback!

Payment Methods

Sellers have three payment methods they can choose to accept.

  1. Flippa Escrow
  2. Escrow.com
  3. PayPal

 

Flippa Escrow

Pros: Trustworthy and secure

Cons: Takes more time to complete than PayPal (3-7 days usually but can take longer depending on your bank).

Flippa Escrow is the recommended and most trusted of the three available payment methods. There are no escrow fees apart from a 2.9% Credit Card surcharge for Buyers with Flippa Escrow. Success Fees are automatically taken out of Flippa Escrow payments so you never have to worry about paying it separately. There is a flat $25 international wire transfer fee if the Seller opts to have funds placed into their personal bank account and is located outside Australia, New Zealand, and the USA. The Seller can instead opt to receive payment into their PayPal account, where Flippa charges no fees but PayPal typically levies their own. The Seller can choose how to receive their funds at the beginning or end of the transaction in the Flippa Escrow screen.

For the Buyer, payment can be initiated from the Start Flippa Escrow button in the Sale Completion Area (provided the Seller has selected Flippa Escrow). Wire transfers to Flippa Escrow may be started from the Buyer’s bank account at any time once the transaction has begun, and debit/credit card payments from the Buyer can be accepted when the Seller is outside of India, Indonesia, and Pakistan.

The Flippa Escrow transactions usually take between 3-7 days to complete. This depends on a number of factors, including different time zones, delays from the Buyer’s bank, intermediary bank fees, and if either customer has been offline for a day or two, etc.

 

The Flippa Escrow transaction process:

– Once the listing has ended and has a winning bidder, a Sale Completion Area (SCA) is created and from there the payment can be initiated.

– The Buyer would click on Start Flippa Escrow (if available).

– First, the Buyer is instructed to make the payment into Flippa Escrow. The payment must be the full transaction amount and typically must be paid in one installment; split payments via a credit card are not possible. Payments can be made using a wire transfer, Visa or Mastercard debit or credit card. Buyers have to make payments via wire transfer when sending funds to a Seller  who is based in India, Indonesia, and Pakistan.

– Once received, the funds are then securely stored in the Flippa Escrow vault and the Seller will be instructed to transfer ownership of the asset(s) to the Buyer.

– When the Buyer confirms that assets have been received and they are as expected, they will then release the funds to the Seller.

– The Buyer and Seller should define a set inspection period after the Buyer receives the assets to confirm they are as expected before the Seller requests the release of payment.

– Once the funds in Flippa Escrow are released to the Seller, they should arrive in the Seller’s account within the next few days, but can take longer depending on the Seller’s country of residence.

– If the Buyer becomes unresponsive and does not release payment or if the Buyer has paid into Flippa Escrow and the Seller is unresponsive, a dispute can be filed and our Marketplace Integrity team can review and potentially release or refund the funds in certain circumstances.

 

 

Paypal

Pros: Quick, easy and familiar

Cons: Little to no security, Flippa cannot gain access to information and it is limited to certain countries

PayPal is an American company operating a worldwide online payments system. Online money transfers serve as electronic alternatives to traditional paper methods like checks and money orders. With Paypal that there is NO escrow or third party involved.

Paypal is the fastest and easiest payment method of the three available on Flippa but, using PayPal is the least secure purely because we are unable to monitor the sale and keep assets safe.With Paypal that there is NO escrow. PayPal transactions are usually between Buyer and Seller – no third party interference – so be sure to ask questions and build-up a level of trust before sending/receiving funds/online assets.

PayPal is unavailable in Ukraine, Pakistan and Israel. To check if your country of residence accepts PayPal then please reference the PayPal website for a complete guide. Feel free to contact their Support team for more information. PayPal also offers phone support.

 

 

Escrow.com

Pros: Secure and safe.

Cons: Higher/variable fees and can takes longer than PayPal.

Escrow.com is another trusted form of payment that works in a similar way to the Flippa Escrow process. Escrow.com reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disperses funds when both Buyer and Seller are satisfied.

Escrow.com is secure but like Paypal is independent of Flippa which means we do not have direct oversight of the transaction. We offer a 20% discount on Escrow.com fees when the transaction is initiated from the Flippa Sale Completion Area.  For more information on Escrow.com, including a fee calculator, you can visit their website:

 https://www.escrow.com/what-is-escrow

 

    • Our Payment Recommendation:We wholeheartedly recommend Flippa Escrow because:
      • Assets are kept safe until payment has been made
      • Funds are secure
      • Agents have access to transaction details so we can answer more questions regarding the sale
      • We can issue refunds when applicable
      • As a Seller you can opt to have funds placed into your PayPal account (instead of bank account ) which will completely avoid the $25 wire transfer fee.
      • Flippa Escrow is free to use

 

 

Buyer Certification Hold

We receive a lot of tickets through Customer Support regarding the $5 Buyer Certification Hold. The Buyer Certification hold is a check conducted by Flippa to make sure you have a functioning bank account/credit card that will allow you to send/receive funds while you are buying/selling on Flippa. You will be automatically prompted by the system to get Buyer Certified when you place a bid over $200.

If you do not have a credit card but wish to bid over $200 you can get Buyer certified by sending us a photo of your ID and another photo of you holding the ID. For more information, contact our support team.

The hold is not a charge. We do not remove any funds from your account. The duration of the $5 hold should not exceed a couple of days depending on your bank and which country you’re living in. Some countries’ banks operate much slower than others so it may take time to see any charges.

 

 

Premium Buyer Certification Hold

 

Buyers who place bids of over $2,000 will have to pre-authorize their credit card/bank to be Premium Buyer Certified. The hold is increased to $500 for Premium Buyer Certification but works the exact same way as the $5 hold.

Unfortunately you can not be Buyer Certified in advance. You will be prompted by the system  you are bidding 5k+ on a listing. For any questions regarding Buyer Certification please contact our support team – [email protected].

 

 

 

Success Fees:

The Success Fee on Flippa is 10% of the total sale. The Success Fee is mandatory and is non-negotiable. With Flippa Escrow and Escrow.com the Success Fee will be automatically deducted from the total amount. Sellers who opt to use PayPal must select ‘Pay Success Fee’ from the SCA,.

All Sellers will be invoiced for Flippa Success Fees but please remember that the fee will be automatically deducted when using Flippa Escrow or Escrow.com. Therefore, Sellers using these methods can ignore any invoice awaiting payment. Failure to pay Success Fees will result in a suspension or a permanent ban. Users are notified when a Success Fee is overdue.

Success Fee rates may range between 12.5-20% for a Seller using Dealflow or in-house Domains Brokerage. The Success Fee percentage will be negotiated and determined by both Seller and Broker at the beginning. For Domain Brokerage you can expect to pay a mandatory 10% Success Fee if sold on the marketplace, and 15-20% for account management / brokerage. Follow the table below for more information on Dealflow Success Fees.

 

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The only other transactions to expect while using Flippa are paying for Listing Fees or Upgrades either of which can be paid by credit/debit card (we do NOT accept American Express) and PayPal. A complete breakdown of listing options and fees can be seen in the Beginners Guide:Part 1. 

http://flippablog.wpengine.com/the-beginners-guide-to-flippa-part-1/

 

Feedback

Leaving Feedback is one of the most crucial parts to the Flippa platform. Feedback on Flippa allows buyers and sellers to share their experiences in an open environment.  Flippa does not edit or censor feedback comments because we believe it brings a very reliable element of truth and trust to our marketplace. However we sill step in if there have been false claims made or the content of the comments breach Flippa T&C. To report any unfavorable comments please contact a member of our team- [email protected]

 

We don’t allow feedback comments that contain:

      1. Spam, advertising or other commercial content, including links to such content
      2. Obscene, racist or vulgar language
      3. Feedback not related to this sale, but to other transactions
      4. Personally identifying information such as phone numbers or addresses
      5. Political, religious or social commentary
      6. Content that is fraudulent, misleading or deceptive
      7. Content that refers to a Flippa dispute or investigation

 

Every user will receive an invitation to leave feedback 7 days after a sale has been completed. Each user will be invited by a link sent via email. The option to leave feedback will be available for 60 days and will expire after that. For more information: https://flippa.com/feedbackpolicy- 

 

In the next Beginners Guide we will delve into the dispute process on Flippa. As mentioned before if you have questions or recommendations on what should appear in the next Beginners Guide then please do not hesitate to get in touch- [email protected] / [email protected]

 

We would love to hear from you!

 

The Beginners Guide To Flippa: Part 2

The Beginners Guide To Flippa: Part 2

In our last post we covered an introduction to Flippa, setting up a profile, and the listing categories & costs. What do we want to answer in this post?

  • As a seller, what do I need to know before listing?
  • How do I list?
  • What information do I need to have prepared?
  • Why do I have to prove anything?
  • Who will see this information?
  • As a buyer what should I be looking for before bidding?

Websites

Established

Proving Revenue:

We take our Marketplace Integrity very seriously so when an Established Website claiming revenue is listed with us we do our utmost to ensure those claims can be verified. Although the onus is always on the buyer to carry out sufficient due diligence, we monitor the marketplace by conducting listing reviews and investigating claims made by the Seller. Potential buyers will want to see traffic and revenue information clearly displayed so providing easy access will also benefit the Seller. As a Seller any claims made will be reviewed and you could be suspended until sufficient proof is provided.

As a Seller you will be expected to back-up any claims made with attachments added below the Seller’s Notes Section. These attachments should be of screenshots taken from whichever financial platform your site uses for accounts e.g Paypal, Shopify, Stripe. Any discrepancies should be noted here also. The attachments should also include:

  • The listing name
  • The date
  • Financial Information
  • Any sensitive information blocked out

It is important to note that Excel spreadsheets are not acceptable as they can be easily modified. Alternatively, a video walkthrough could be added as a single attachment but the same information listed above needs to be displayed clearly. The additional information provided must match the figures displayed on the revenue graph.

Claiming AdSense revenue

Just like Verified Google Analytics, the AdSense data we use comes directly from the Google API. When claiming AdSense revenue, sellers can log into their Google account and authorize Flippa to collect this data.

During the listing creation process, click on “Verify AdSense revenue”. Once you’re logged in, and have granted permission for Flippa to gather this information, your Flippa listing will automatically include your AdSense revenue and use it to populate your total revenue claims.

If your site earns revenue from sources other than AdSense be sure to disclose any information in the Sellers Notes or through attachments.

*Note there is no need to include AdSense screenshots if you’re already verifying these claims.If you have any questions about this process our Customer Support are always there to assist.

Proving Traffic:

Before contacting Customer Support about traffic claims ensure that Google Analytics has been installed on your website first. Please remember that GA must be installed for 30+ days before it can be displayed on Flippa. If you experience trouble verifying Google Analytics there are a number of alternatives.

  1. Grant our websites team access to your Google Analytics account and they will be sure to get it up and running. You can do this by emailing access to [email protected].
  2. Do not make any official traffic claims. If you are uncomfortable granting access to our websites team you can opt to claim no official traffic. You can then explain in the Sellers Notes section to potential buyers what the situation is and provide screenshots of your GA account.

Starter Sites:

When you list a Starter Site there are a couple of factors to keep in mind. Firstly, if your website has been established for 3 months or less it qualifies as a Starter Site. If your website is 3 months or older it qualifies as an Established Website. Starter sites are not able to claim any traffic or revenue on Fippa. Starter sites are typically starter templates and do not have any traffic or revenue to claim.

If you have accidentally listed an Established Site as a Starter Site, you will need to cancel your listing and re-list as an Established Site.

If you believe your Starter Site is particularly advanced and you wish to list as an Established Site please contact [email protected] or our websites team at [email protected].

 

Domains

WhoIs

If you’re selling a domain name on Flippa be prepared to verify ownership. If you are using a WhoIs privacy service we suggest making it public while the asset is being listed for sale. We understand most people do not want their personal contact information (name, address, email address, and phone number) made public in the Whois database but if you are listing your domain(s) for sale, we need to be able to verify ownership before your listings go live in the marketplace. If you use a publicly facing email address on whois, the ownership verification process is much faster if you ensure that your registered email on Flippa matches the email address on WhoIs.  

Name Servers

Changing your name servers will not only prove ownership but also create a landing page that allows visitors the opportunity to submit their bid or offer directly. To setup your Sales Landers, visit your registrar and change your name servers to:

NS1.FLIPPA.COM

NS2.FLIPPA.COM

Keep in mind that when you have your name servers set, your listing must be in a live state for the landing page to resolve

Just like websites, domain listings on Flippa also include a Sellers Notes section where you are free to disclose any information you feel potential buyers should know. If you do try to sell a domain name on Flippa, take advantage of the fact you can include a detailed description of the domain name in your listing, which is something that other traditional domain marketplaces don’t offer.

Suggestion:

If you feel you have a premium domain on your hands and are seeking assistance in selling it, please reach out to our Domains Team via [email protected]. Conversely, if you are seeking to acquire something in particular, please reach out to [email protected] with your parameters and budget.

App Ownership

Just like domain and website listings, proving ownership of an app is mandatory on Flippa. There is an ownership verification process that needs to be completed before your app goes live. This process differs between iOS and Android apps.

Android App Verification

You will be provided with a 10 digit verification code upon listing. As the app owner, you will be instructed to copy and paste this code into the app description on Google Play store so it can be referenced. The verification will be done automatically and is usually the last step to be completed before your app listing can go live.

iOS App Verification

To verify ownership of an iOS app, users will receive a unique verification token which needs to be added to the end of the support url. For example, if the support url is google.com and the token is 70018, then the updated Support URL should be google.com?token=70018

If you experience trouble with app verification, please email [email protected] and we’ll get right back to you!

Proving Revenue & Traffic

Revenue and download claims need to be presented through attachments. Upon editing your listing, you will be instructed to enter in your financial information but remember to enter month by month figures as opposed to a monthly average. If you have questions in regards to this, you can always email [email protected] for further assistance.

As a Buyer?

Don’t underestimate the power of communication!

Don’t be afraid to communicate with other users, conduct due diligence and ask questions. Ultimately, the onus is on the buyer to verify claims made by the Seller. We do our utmost to control the marketplace and ensure all listings are legitimate but from time to time fraudulent listings make it through. When you win a listing on Flippa, the sale is legally binding so make sure you are confident with your bid by doing extensive due diligence prior to bidding.

We have  a team who are ready and available to answer any questions you may have regarding the platform. Our blog offers an extensive amount of information and our Customer Support team are on hand to assist. For more information or suggestions you might have regarding future blog posts please contact us [email protected] .

The Beginners Guide to Flippa: Part 1

The Beginners Guide to Flippa: Part 1

As the new Customer Support Representative at Flippa, I have come to realize that it can be a daunting marketplace for beginners. Having no prior experience working in the tech industry I myself was a confused user during my first week. If there was any true indication to my beginner level it was when I had to ask a coworker to clarify the difference between a domain and a website. Complete and utter amateur.

I have since encountered a lot of common issues coming through our mailbox, even though our developers are constantly updating and improving the platform. I now have a comprehensible understanding of how the marketplace works; keep in mind, I had my trusty colleagues to bombard with questions on a daily basis (or every 5 minutes).

Even though I am still learning every day and am technically still a beginner, we thought it would be beneficial to all of you newcomers to welcome you with a beginners guide for reference. And who better to write a beginners guide than the new girl? So here we go.

This guide will consist of a series of blog posts based on the most commonly asked questions received through Customer Support, as well as what I have learned as a new Flippa user. I would also like to welcome newcomers to the marketplace and encourage any of you to get in touch with unaddressed queries you may have via [email protected]

Basic Information

This may seem too obvious and unimportant to be taken seriously but it is worth mentioning: upon registering with Flippa, please ensure your email, phone number and personal information are clear, correct and current. This information will be viewed by administration and potential buyers/sellers, so make sure it is up to date. Verifying this information is correct at the start can save you time when you contact customer support at a later date. Also please ensure your PayPal email is accurate for payment purposes, if applicable.

Familiarize Yourself With The Online Market

This is very important. Evidently users skip this step when joining the marketplace and, admittedly, so did I. Whether you are selling a domain, website or app, or are in the market to purchase one of the three, it is important to grow accustomed to the types of listings that exist.

Familiarize yourself with payment methods, fees, the newsletter, the blog, promotional upgrades, FAQ etc. Before jumping into transferring assets of any kind make sure you are familiar with how transactions are conducted on Flippa. Read through our Terms and Conditions and make sure you agree to them prior to agreeing to buy or sell. Learn what a Reserve Price is so you don’t end up selling your listing for a price you are unhappy with. Look at the advantages of our payment methods available (Flippa Escrow, Escrow.com and Paypal) and determine which method(s) suits you best.

If selling, you are encouraged to visit other listings and auctions similar to your asset and examine what information is important to display and how to best relay that to potential buyers. Take your time in creating a listing and edit The Sellers Notes section carefully as you will not be able to change this once the listing is live. Be prepared to back-up any traffic & revenue claims you make associated with your listing.

The world of online assets is a very broad and fast paced one so before jumping right in or even dipping your toes in, conduct the adequate research first. It is easy to become familiar with the online marketplace and should not be a timely process for anybody remotely tech savvy. Judging by the problems a lot of new participants experience, examining how the market works and how business is conducted on Flippa before bidding/listing is highly recommended.

Below I have compiled a list of the available listing options Flippa provides.

Domains:

Auction Listing: $9
The Seller can display preferred information in the auction’s description. Once you pay the initial $9, if your listing does not sell you can re-list it once for free; subsequent relists cost $5. Rest assured that you can always update how your asset is listed on Flippa, whether continuing its auction cycle or bringing it over to a non-auction (classified) listing.

Classified Listing: $0
Non-auction classified listings do not display any information about the asset, like an auction does. Classified listings are free of charge which is always a bonus and offers low maintenance for the Seller; but only opt for this if you are willing to be patient.

Websites

First determine if your website is a Starter Site or an Established Site. If listed incorrectly, the seller will have to cancel the existing auction and re-list correctly which is obviously not ideal or time efficient.

A Starter Site can be defined on Flippa as a newly-created website under 3 months old. You will not be able to claim revenue on a starter site. If your Starter Site does have significant traffic or revenue it may be listed as an Established Site under certain circumstances. An Established Site is defined as 3 months or older so traffic and revenue numbers are very important to display to potential buyers.

Classified: $9
First determine if the website is an Established Site or a Starter Site. Setting up a classified listing is a much quicker and easier process as opposed to an auction. Auctions are a lot more time-consuming and fast paced. Classified listings are easier to manage with a ‘set it and forget it’ kind of method whereas auctions offer a much more hands-on method.

Starter site auction: $19
Established site auction: $29

Similar to a domain auction, sellers can display more crucial information to potential buyers like Google Analytics, AdSense earnings and profit claims.

Apps

Auction: $9

What’s Next

In the next installment of the Beginners Guide I will be delving deeper into the world of the online marketplace.

This is an ongoing and interactive Beginners Guide, so you are encouraged to get involved and email [email protected] with any problems/queries you’re experiencing or suggestions for material to be featured in the coming weeks. Maybe something you had great difficulty understanding or overcoming when you first joined Flippa, or any advice you would personally offer to new participants.

Flippa offers such an extravagant and vast platform to facilitate buyers and sellers like no other. The marketplace is current, relevant, opportunistic and ever-expanding so become familiar with how it works to ensure you’re knowledgeable and confident in navigating it. The possibilities are endless.

Got it? Head on to our Beginner’s Guide Part II. 

Ready to start bidding? Head to the Flippa Marketplace and check out our Editor’s Choice listings.

Any more enquiries, reach out to us here.